were looking for a deline clinef 8.3 million. the unemployment rate is down to 13.3%, versus the 19.5% anticipated. still rough numbers but so much better than anticipated. as a result, the dow futures up by 625 points. have a great weekend we'll see you back here. right now, it's time for "squawk on the street. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber live from separate locations it's a stunner by any stretch of the imagination. the jobs number for may, 2.5 million jobs added, not subtracted as leisure, hospitality comes to the rescue accounting for half the gains. we'll hear from the president in an hour. fut chuures do suggest a breakot here

ten-year 91 basis points one more way in which the economy in this case has confounded some and the markets had it right >> yeah. there wasn't a day that we came in and we heard from very big people, rich people, hedge fund managers saying this is ridiculous it's fanciful, that the rally itself was uninformed. i admit, look, there were parts of me that said are you kidding me, every morning the airlines will be up big when very few people are flying? it turns out that the hiring took place in the areas that we felt were most devastated. retail, travel, leisure. and it's remarkable because when you're looking for 20% and you have all your scripts all set to talk about the beginning of the next great depression, and then you get the actual numbers, it kind of knocks your socks off. you struggle to think why did we hear so much woe is me the other side says we heard it because 13% is still

unfathomable, but it's certainly more fathomable than 20% so, i don't know it's good. >> it is good. the president right now is tweeting as we speak it's a stupendous number it's joyous. let's call it like it is the market was right it's stunning, tagging you, jim. adds it is a stunner by any stretch of the imagination now some will look at the nasdaq futures today and suggest are the stay-at-home stocks going to get dinged here, but what's important to focus on? >> for day after day we have seen the airline stocks go up. and they're now -- the government gave these companies money. the government has more wins in all of these it does show you that before we even saw places to go, theme parks, say, retail, people were going. and i think that there must be a

perception among the -- david, this is something you and i talk about a lot. this is not my perception. this is the perception, that covid-19 is behind us. that's a dangerous perception, but it must be the perception. >> well, and during the course of the most difficult times, it appears that we were going through economically we made the point that while we were in the center of the pandemic, many parts of the country were not feeling the same way so it would appear that when they did reopen, the demand was there in a way that perhaps we had not anticipated or some had not fully anticipated. you know, we made the point, 21,000 new cases yesterday it continues it's just not part of the conversation anymore for some reason, as you see the president, of course, tweeting about it being a stunner by any

stretch of the imagination i think quoting what carl said at the top of -- at the top of our program. but, it's sort of a background conversation about the pandemic now. we've been dealing with social unrest for the last week in the country as well. i do wonder, we spoke to a lot of business owners -- jim, you said the same -- about wanting to hire people back but the bonus unemployment money was keeping people from wanting their jobs back. i guess that may not have been as true as we thought? >> or ppp worked there were more than 4 million businesses that took it. i think, again -- david, you hit on something there's a region that we're in, and our region is hobbled tremendously both by the number of deaths we had and the number of cases and also by government that seems determined to make it so nonessential cannot survive. slow opening the rest of the country did not

react to the pandemic in the same way and i begin to think when frank del rio comes on from norwegian cruise and he says you don't understand, the bookings are big for next year, it's a firm and optimistic view that the american people had maybe well ahead of wall street about what can happen here. i think about the twin ray dalio and bill ackman period and the idea of closing america or that america might be finished. it's -- it's off the table now the question is whether it's a vs"v" or a "u. if you say it's a "u" you might be left behind by the stock market itself. it's already well ahead of where we thought it was going to be. i wrote a script for what i was going to ask vice president pence, i ripped it up. i worked on it all night what the heck was i thinking i should have watched the nba.

>> we have that press conference now. listen, you have been talking a couple weeks more positively about the market which has been leading the sense of the economic recovery and many people have been questioning it. and continue to, by the way, given today we may be inching closer and closer to being flat on the year for the s&p. it seems virtually impossible not that many weeks ago. we watched the banks turn around in a dramatic way. that seems to be continuing today. the airlines have been another feature, jim i mean, so the market knew that we were going to have a "v" or we may not i come back to the conversations i have time and again with the companies having a harder time but they're not talking about hiring people. they're talking about making furloughs permanent. so i do wonder -- steve sedgwli referred to this earlier, the idea of a second wave, that

comes into mind for people who question the valuation of the market at the current point and the earnings of the companies as well >> i spoke to several ceos in the travel and airline business yesterday, they say people want to travel. i spoke to a high-level ceo at a major aerospace company, people want to travel i mean t would just be incredible -- let's say that the faa gave the high sign for the 737 max. does boeing go to 300? yes. because if people want to shop and people want to fly and they're going to get that opportunity as we open, it will take only a second wave of the pandemic that can slow this thing down it goes the other way and people start hearing it and ceos start hearing it and executives hear it saying you know what? unless my business is being shut down by the state government or the city government i better get on the case because there's a

lot of pent-up demand. that's what i'm seeing watch ford motor we know the cdc yesterday said basically no more carpool, we know we don't want to use public transit, we believe that's where the covid was concentrated on in new york and philadelphia. the next thing you know, you see an auto rally. it's all happening too fast. i think the stunning thing was, so many people think we had to retest the bottom. those are the people who have to come in. if you watch the crawl, so to speak, since 5:00 this morning, southwest air, united, just buy, buy. america, buy, buy, buy now secretary mnuchin should be cashing in but the market got it right. and the big hedge fund guys who told us this was going to be the highest and worst and most dangerous since 1999, they made an ill-advised prediction. >> yeah. one lesson here is that because

of the reopening success, you could call it, if we do see spikes in new cases, i mean, it is going to be virtually impossible to implement a second round of stay-at-home, shelter in place lockdown restrictions i think everybody agrees with that you have an index of covid names, would you be shorting that index >> can't short it because a lot of those names represent tremendous innovations by tech to do the work at home i think that will stay part of the equation yesterday smucker reported a number i like this, it's pbj. the most basic thing they were, i felt, downbeat about the future i understand why they would do that people want to go out. the question is will there be in a second wave a recognition that the hospitals, that the doctors have solved so many cases other than the elderly who maybe just

were not going out during this period but you know what? it's not a death sentence anymore. we found out it wasn't a lung disease. we found out it was a circular disease. it wasn't something you put ventilators on there were certain ways to handle it. we're about to have a monoclonal study in the next five days at regeneron. there's 2 billion doses for the oxford vaccine i think science caught up and passed the government. the government until dr. fauci said maybe it won't be a fall redux, what's happened is the doctors and hospitals figured out things they caught up with it i'm not as concerned about a fall 1918-like resurgence as i am a recognition that the small businesses need to be able to come back because the government must let them come back. enough with the nonessential designation. enough with that enough with making costco and

walmart the only stores left open let's open the rest of the country. people want to shop and go somewhere. let them do it >> jim, we have a big hour in just the next few moments we'll talk to the vice president, mike pence, about the jobs number, china and a whole host of other issues we'll hear from the president himself in a news conference at the top of the hour. if you're just waking up and joining us, the jobs number for may, 2.5 million jobs added in what is a stunning bit of economic data. we're back in a minute

jobs number this morning suggests a big pivot for the economy and rates, we' they'll you that, too. let's get to rick santelli >> rates going up, stocks going up and data getting better that's a trifecta of strength. however when you're carrying record amounts of debt domestically and globally and adding more potentially, maybe services the debt is an issue. we're not quite there yet. look at an intraday of tens, up 75 basis points. no matter what maturity you're looking at, no matter what part of the world you're looking at, when the coronavirus first hit, the markets had their biggest moves. in the fixed income sovereign space, that was mid-march. all the charts started mid-march. when is the last time we closed

here mid-march. 30-year bond, it traded as high today as 175 it traded up closer to 180 at the other point in time. if we break there, that will be wave two, chapter two of a breakout if we take out the mid-march extremes what is this doing to the yield curve? you can get pretty much permanent ink and draw your chart for two-year note yields certainly they move a bit from 16 to 19 basis points. in the grand scream they'll be like the fed overnight rates will stay low for long, long, long tens to twos blows out a bit right now it's trading at a level around 70 basis points should it close here, it would be the best close since february of 2018. it could break out further finally, let's look overseas when it comes to correlations on the sovereigns, everybody is correlating here, so many

issues if our economy does better faster and reopens slowly but surely and continues to have rate of change improvement, i would think that investors would take that logic into other markets like europe and they have freshly sprinkled stimulus. so look for their markets to get explosive and bund yields shot up just missed minus 25 basis points they have not closed there since the 25th of march. mid-march extremes give you all the answers you need for the next breakout points back to you. >> thank you for that. we won't take our eyes off the ongoing discussion about racial and income equality in the country. speaker pelosi talked about that topic with jim last night on "mad money." >> we can talk about what happened, when and what, all that but there's been something very -- a pattern of bad behavior in terms of how people are treated unfairly in our

country. but let's make this -- take this moment to be an inflection point, a pivotal one that we are going to not just proceed incrementally, but in a very strong way to do things differently. >> just a moment ago, nike, $40 million commitment over the next four years to support the black community. >> i am so impressed with doug mcmillan, the business roundtable, nike not saying our hearts and prayers go out to this or that family i don't mean just this family, there's several instances of terrible racial killing. and this is not that time. this is a time when business feels we have to roll up our sleeves and change things. that is very different from what we've seen during a period where we race riots in the '60s. you have to respect the fact

that business feels they have to do more than wait for the government it's almost as if business wants to lead the government when you think about someone who is the head of walmart coming on and speaking to eloquently or arnie sorensen, doug parker, really incredible heart-felt thoughts, they're not about, okay, here's how i feel, i feel badly. let's get to the numbers they're not getting to the numbers. they're trying to figure out how to solve the problem, david. >> right understood it's a good point. let's hope it's more than press releases or money that is allocated towards this but actual action and ek kugs on that vision. you know, maybe we can follow up on these things in a number of months or years and see how it all workedout and see whether the companies did follow through. >> yeah. we're seeing dollar signs, that's for sure. quick break here we'll take a moment to look at

futures. we'll talk to the vice president in a minute. s&p looks to open up about 60 handles as the average s&p stock is almost 34% above its three-month low. a grandfather of 14.

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welcome back time for a mad dash. it's been a while since i said hot ten. >> broadcom reported, they take on so much debt. they made so many acquisitions they did the cea acquisition, some thought it was an acquisition too far. they talked about really off the chart demand for data. and when people are trying to figure out, okay, where does tech fit in in this moment, maybe you go for the raw data plays. is this as pertinent as buying an airline stock orb a crui a c stock? no and carl asked do you short a covid index? i think broadcom is levered enough, but they said a major client had a push out to build things that client is apple

keep track of the fact that apple, while it's numbers we know revenues service stream doing quite well had a second note today, apple looks like it will be later if you read the tea leaves of broadcom >> look, when we look at a one-year, it's an actual "v" a literal "v" on the screen. the low was -- where were we 180. something like that. back during the height of the market selloff >> these are checkmarks. almost like checkmarks david, when you look at the bottom to where we were, since march, it was apple that led us up microsoft is responsible for 10%. maybe they take a breather and we let the bottom of the pack lead us because these numbers are so good. >> yeah. that's a point we made a lot of times in the s&p apple, alphabet, amazon, microsoft, 5 trillion in market cap there.

we'll keep a close eye on those, on the overall market as well. don't forget, vice president of the united states, mike pence will be our guest after this

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welcome back our discussion continues about the jobs number for may at 2.5 million. jim, of all the things working, you can pile on top of that an opec plus meeting tomorrow where i don't know, what's the calculus now on production cuts? >> brian sullivan had covered it excellently at 5:00 a.m., talking about the cohesion among opec we had not seen that in a long time all i know is this means the permian is back. at these prices, even some of the worst oil companies can make money, which means all those oil loans we were so worried about, makes that one more thing that perhaps we were too worried

about. if you looked at wells fargo and the oils and chauthought charli scharf may have trouble with it, at these prices he won't >> yeah. there's been a whole school of thought, fundstrat's tom lee's been one of them, he says you have to keep piling into the epicenter stocks at the center of social distancing, airlines, cruise lines, travel and energy. does that playbook live? >> the playbook does live in the sense that if you look at a norwegian cruise -- i pick on that because they had the fewest covid when you look at the cdc numbers. so therefore it was the best shouldn't it get back to half of what it was? they did take down a lot of debt but they can pay it back i think that when you look at southwest air, they -- can it really get back to where it was? the animal spirits might because this airline group has been so heavily shorted. but these companies all raised a

lot of money the only thing that can momentarily stop them, i think i can ask vice president pence this, the treasury took a big stake in almost -- in alaska, american, delta, southwest, jetblue. maybe the treasury rings the register, why fool around? why not just take the money off the table? gary kelly, i keep thinking what he said to us. there was no place to go, there was no traffic suddenly there is a place to go, but will business travel pick up now that we've done this stay at home and remarkable business i don't know if they can get back to where they were, but they should get back to close to half of where they were. >> that's a great point. we talked about vegas yesterday. today it's universal orlando opening in florida but the airline executives have been quite clear, corporate travel, especially corporate international travel will be a much tougher fix

>> yeah. look, we still -- we have to quarantine ourselves if we go from overseas. you have to have a two-week self quarantine there's going to be pressure on the regulations and on the doctors that are involved with it at the cdc or advising the president. masks and social distancing seem to have worked so let's reopen the economy, maybe we don't need to have people quarantine that long. that would help the big international routes that matter there is an incredible thing that happened here that i have not seen before. the premarket trading of these stocks, of the airlines and the cruises, is really, really heavy. it's actual volume it's not tape painting as we used to say. people want in the stocks because they recognize if a lot of stuff is open, people will travel again american airlines press release yesterday said basically people want to travel, we'll add a lot of routes. if they add routes, they make more money they have to hire back people

furloughed so i think this trade can continue if only just because these stocks were so far below where they should have gotten if you could open up universal and disne disney >> yeah. we'll talk about what jay powell says next, what congress does next on further stimulus and so forth. there's the bell at the nyse, an ipo, shift four payments, a provider of payments and money transfers, at the nasdaq, data nexus we'll get to china with the vice president in a moment, a day after pompeo says that the nasdaq's listing rules should serve as a model for chinese names. >> yeah. this is the time when i think that the vice president has been the leader in the administration of trying to figure out -- along with peter navarro, trying to figure out how to handle and contain china. and i think that the -- the

brokerage firms have been meen mercenaries. there's two deals in the hopper. i think that you should expect to get blow back from the government these deals don't need to be done and the financials -- i see lucken trading up big. i don't know what they're worth given there's fraud. there are a lot of people through newer forms of trading and newer places like robinhood that are what we used to call gunning lucken, and they're gunning hertz. i know lucken resonates in terms of trying to figure out what a chinese company is worth the fraud there was extraordinary. the pressure some of us got from the bankers was extraordinary. i was jimmy chill, i just said shut up. >> speaking of banks, today it's

about comerica it's about zion. it's about lincoln national, a lot of swirling around today >> the ones that were -- occidental could make money here no one is making money at minus 37 but there were levels where you could make money if you were a couple of well established oil companies, and then a couple that had bad balance sheets, at this level they can make money rather incredible. they made it back. the companies that were -- if you thought the economy was going to slow down, the stocks would be annihilated i know meg tirrell has regeneron on today about their human trials, that stock can't get out of its own way that's a recession stock >> yeah. >> we've got someone who i think has his pulse on the situation now. dow up 700 points. joining us exclusively is vice

president mike pence mr. vice president, thank you so much for coming on "squawk on the street". >> you bet great to be with all of you. and it's a great day for america. >> let's talk about that it's a remarkable number there's no doubt about it. we were looking for maybe as much as 20% unemployed we got 13% nice growth. we have to ask is the worst over and do you need to do more than you've already done >> well, i really believe that today's extraordinary economic news, where we saw unemployment decline to 13.3%, we saw 2.5 million jobs added, it's a tribute to president trump's leadership throughout this pandemic, but long before. remember, under this president's policy of less taxes, less regulation, free and fair trade, unleashing american energy, we created more than 7 million jobs but the president's decisive action from january forward where we suspended all travel from china, the mitigation

efforts to put the health of the american people first, more than $3 trillion provided for families and small businesses to see us through this pandemic and the recovery efforts, then ultimately the president's guidelines to states across the country to reopen their economies is all working we're seeing it. it's remarkable to think this jobs report today is from a survey in mid-may when roughly 50% of small businesses around america were starting to reopen. the u.s. chamber did a survey where they think 80% are reopening. all of our discussions with governors, our focus in the month of may at the coronavirus task force has been to safely reopen america and this jobs report today shows you the american people are stepping up, standing on that strong foundation that president trump laid, the strong resilient economy, the resilience of the american people, and this recovery begins today.

>> well, mr. vice president, if that's the case, do you need to coalesce with the democrats who would like to have a $3 trillio plan we know that the bountiful versus what it was unemployment claim number with additional $600 expires at the end of july. is it okay to let that expire? do you need to have talks with the democrats? do you need to do something about minority aid packages to cities because of what happened not so long ago, the tragedy in minneapolis? are these on the table or do we just let it run? >> well, look, those discussions are ongoing. we're going to work in good faith to put the interest of the american families and american businesses first but what's absolutely essential about any additional recovery package is that we have the kind of pro growth policies that president trump has been advancing. we'll be there for families to see them through the president said early on -- i'm sure he'll reiterate in a

few moments today -- he said we'll do whatever it takes to get the american people through this pandemic. we've done that. we'll continue to do that for families and small businesses, particularly businesses that have been severely impacted in our inner cities including businesses subject to riots a i and looting in recent days what has to be there, this president believes, we have got to have the payroll tax cut, the pro growth policies that will continue this economic recovery. the only thing that could slow this economic recovery is if joe biden and the democrats won the election this november and brought about their higher taxes, their war on coal, the green new deal and all the policies that president trump has been pushing back on and that is the choice the american people will face in november but today what you see is the strength of the american people who have heeded this president's guidance we put the health of the country

first, the mitigation efforts worked our recovery and relief plans worked the president's guidelines to states across the country to reopen america are working now all 50 states are reopening their economy. you see the evidence of that in these numbers today. >> all right i understand the political aspect but i want to stick again with opening america and what it means for jobs that's fundamental but this may be the chance, mr. vice president, you gave a towering speech in front of the hudson institute, october 4, 2018 i know i was concerned our economy might be tweaked to be able to do this. you said i come before you today because the american people deserve to know that as we speak beijing is employing a whole government approach using political, economic and military tools as well as propaganda to influence the united states.

if you were doing that speech now, would you include the term biological >> what i said in 2018, the speech that i spoke on behalf of the administration simply articulated president trump's leadership from the beginning. jim, you talked about this many times. no president in my lifetime has done more to rebalance our trading relationship and to stand up to china's abuses than president trump. you have seen that action in recent days. when you look at china's conduct in the midst of the coronavirus pandemic, it just reaffirms the strong stand that president trump took from very early on in this administration relative to china. now that we see china, you know, extending its authority, violating its international agreement relative to hong kong, again, it's an affirmation what china did in keeping from

the world the information that america and every nation on earth needed to deal with the coronavirus pandemic was -- it was a travesty the fact that china suspended travel within china but allowed people to continue to leave the wuhan area to travel to the united states and around the world. but i have to tell you, before there was a single domestic case of community transmission in the united states, the american people can take great comfort in the fact that in late january president trump suspended all travel from china. and i can tell you, having been leading the coronavirus task force now over the last three months, that act alone bought us an invaluable amount of time to stand up a whole of america response that unquestionably, because of the cooperation of the american people, because of the leadership and state and

local leaders, incredible health care workers and the leadership of president trump, we slowed the spread, we flattened the curve, we saved lives. now going forward we'll continue to hold china accountable for the -- what they did and what they failed to do to give the world the information that we all needed and deserved. >> mr. vice president, not to get too wonky, but money supply in this country is up 80% annualized in the last three months as we were trying to respond to the pandemic. if the recovery does begin today, and i know there's conflicting views about the correlation, are you worried about inflation? is the white house on guard for inflation? >> we always -- we are always mindful of inflation but i must tell you, one of the numbers that our economic team presented to the president and me earlier this week is that savings are up across the country. and make no mistake about it the president's priority from

early on in this process was first the health of the american people it's why we asked the american people in the middle of march to do extraordinary things, to embrace the guidelines for america, the mitigation, the social distancing, but the second thing was the president wanted to make sure that the american people starting with families had the direct support necessary to make their way through this time that fell upon our nation and i want to tell you that the numbers that are coming out today, what we're hearing in states across the country as americans are returning to work, i think it's a real testament to the decisions that the president made, the bipartisan support that we had for those relief efforts on capitol hill, and that's where we'll stay focused in the days ahead. making sure the american people, american businesses large and small are able to fully recover and then some. but i -- i do want to tell you

that we're going to do what needs to be done to bring this economy all the way back what we believe the real threat to the economic recovery going forward or the policies of joe biden, the policies of democrats in congress, already advocating raising taxes, increasing regulation, green new deal, restarting the war on coal, all the opposite direction that laid that solid foundation president trump laid that created moor th more than 7 million jobs that's the foundation you see in evidence today the strength of the american people, the fundamental strengths of this economy. that's the path that we'll keep this nation on for the rest of this year and for four more year years. >> mr. vice president, it's david faber. the market may have decided that war on coal already, but my question is more to the growing potential disparity between rich and poor in the country. when your administration came into power you were focused on

it may have been one of the reasons why donald trump was elected you passed a tax cut that you said would potentially address it unclear if that was the case then the pandemic hit. it does seem, as we come out of this pandemic that one of the effects is going to be to widen the disparity between rich and poor in this country what policies will you put in place to potentially address that in addition to the social unrest we're seeing now which in part may also be a reflection of that >> well, it's -- what i would want to do respectfully is take issue with the premise of your question when the president cut taxes across the board, when we rolled back regulation, unleashed american energy, we saw unemployment crdrop across this country. we saw wages rise across this country. we just came through a period where we had the lowest unemployment ever recorded for african-americans. the lowest unemployment ever recorded for hispanic americans.

when i was the governor of the state of indiana, we were always pushing on how we can increase wages. that was, as you all know on this network, that was the stubborn indicator, but under the president's leadership and the policies of the last three years, we saw wages rising and they were rising most rapidly for hard working, blue collar americans. so we were closing the gap with the policies that president trump put into effect. and i want to assure you that if there's another phase of recovery efforts, we'll make sure we have more pro growth policies in addition to direct relief for families and businesses as we put this coronavirus more and more in the past every day but the contrast between the policies this president enacted over the last 3 1/2 years and what joe biden and the democrats are advocating could not be more clear. it was the president's policies,

expanding opportunity that we're seeing wages rise, that we're closing that income gap, unemployment at record lows, particularly for minorities, and that's the message we'll take to the american people come november 3rd >> right many of those same populations are on the front lines in terms of the pandemic and make up the municipal work forces around the country, mr. vice president. we had a parade of governors and mayors join us on cnbc over the last few months. both blue states and red states. many of them are concerned, given the significant decrease in revenues they're seeing as a result of the pandemic and the shutdown what, if anything, is the administration willing to do to help those states that potential potentiali will haly will have their municipal work forces? >> there is greater flexibility in the initial funding so that

it can support payroll for firefighters, police and first responders make no mistake about it, the president expressed a strong openness to another relief bill. we are speaking to governors we had our latest conference call with governors across the country the last week. i have to tell you, since the day the president tapped me to lead the white house coronavirus task force, he told me it was to be a whole of government approach, but that meant bringing together all of the governors, all of the state governments around the country with the full resources of the federal government that's really been a seamless partnership every step of the way. through the mitigation period, through the relief programs. but also remember it was april 15th, a month before today's survey was taken, that the president directed our team to send to the states guidelines to open up america again. so states could be ready in early may to begin to put those

guidelines into practice i think the results that you're seeing today are the fact that in states across the country, now in all 50 states, are reopening. they took those guidelines, a phased approach, put them into practice but governors around the country know president trump and i are ready, willing and able to work with them to see them through this time. and those expenses directly related to the coronavirus, we believe they will be appropriately a part of any additional relief effort it's -- guys, i'm telling you, the president is very firm and very clear on this we'll help families, we'll help small businesses, we're open to helping states with coronavirus related costs. but president trump believes to keep this recovery growing and moving, we've got to have the pro growth policies that have contributed to the fundamental strength of this economy from the beginning. that includes a payroll tax cut, and we'll be rolling our sleeves

up and going to work with democrats and republicans in the congress to accomplish just that >> mr. vice president, i know you are a historian, so you might be remembering that 52 years ago, bobby kennedy was in indianapolis, your homestate, on the unfortunate moment when we learned about dr. king and he talked about -- he talked about the idea that out of despair, drop by drop upon the heart against our will comes wisdom to the awful grace of god. protesters, what do we tell them do we answer them with what bobby kennedy did in honor of dr. king do we say something and do something to meet the 150 cities where we have protesters some violent, i know, i don't regard them as protesters, i'm talking about good people who you and i both know are in the spirit of dr. king what do we say to them >> jim, thank you for remembering that indianapolis

was the place of bobby kennedy's historic speech occurred that was an important moment in the life of the nation and i must tell you that president trump and i have been clear. the death of george floyd was a tragedy. it is also -- it has been heartrending for all of us to watch that video and the president and i are committed, the justice department is committed to ensure that justice is served. and we stand with our peaceful protesters we're listening. but there will be no tolerance for rioting, looting and violence against individuals or law enforcement officers that's the reason why the president took the strong action that he took, and we are encouraged to see that in recent days these protests have remained largely peaceful and we

trust that we will continue to see that effort. since the president called on governors to use their national guard, we went from 17,000 national guard deployed in states across the country to more than 32,000 as of yesterday. so we're providing providing foe security of our communities, of our businesses and of peaceful protesters, and we'll continue to do that. but finally, we're also going to listen we're going to pray to have ears to hear and to have open hearts. i met yesterday with african american leaders here at the white house. i'll be traveling to a nearby church today, and we really do believe that this is a moment in which we can as a nation focus on the challenges that our african american countrymen are facing, and this president, i'm proud to say, enacted policies saw the lowest unemployment late ever recorded for african americans.

we passed opportunity zones that have seen $100 billion of capital investment focussed on our inner cities he's been a champion of education choice to give families the right to choose where their children go to school and passed criminal reform those are all things this president has passed to lead for every american and to see the prosperity of every american, including our brothers and sisters in the african american community. but we're going to listen. we're going to have open hearts and look for more policies because as the president said, the night of his election, his determination is to be president for all of the american people, and now as we see the first chutes, the first strong signs of an economic recovery, following the coronavirus pandemic, i promise you this president and our entire team are going to continue to work for the prosperity and well being of every american,

regardless of race or creed or color. >> mr. vice president, thank you for joining us on "squawk on the street." >> thank you >> okay. carl, back to you. all right. jim, thanks for that the president is going to hold a press conference in a few moments about the jobs numbers in the meantime, dow 27k first time since march 4th nearly every component is green and the s&p within 1.5% within going positive for the year. when we started our business

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it's remarkable to think the jobs report today was from a survey in mid may when roughly 50% of small businesses around america were starting to reopen. the u.s. chamber did a survey where they think 80% are reopening. our focus in the month of may at the coronavirus task force has been to safely reopen america and this jobs report today shows you the american people are stepping up, standing on that strong foundation that president trump laid the strong resilient economy, the resilience of the american people, and this recovery begins today. >> that's the vice president with us a few moments ago. jim said he believes the jobs data indicates the recovery begins today mentioned a payroll tax and ongoing discussions about further coronavirus relief >> i think our questions about the protesters, what can be done for minorities, these are questions that have to be answered given the fact that

things, the recovery started not today but actually several weeks ago. what an excellent time to come from strength to solve these issues in the way that the business round table wants to. they have to be front and center it's always important to focus on the pandemic. but it's also an opportunity as a show of strength for the federal government to be alive with business and business round table in uniting and trying to listen as he said he would to the questions the protesters are putting and try to solve them as best they could. i take that as a belief that maybe there can be a discussion that leads to more than talk which is what's so necessary >> yep meanwhile, jim and david, looking at some of the indicators this morning. i noticed apple all-time high. that got your attention. >> look, this is one of the

numbers where people are going to say wait a second there were some smart people who knew it. and they're going to ring the register so there will be some profit taking there will be some people who say why do i need the stocks of faang? they're big cap stocks and do well when money comes into the s&p. the money managers who listen to the druggckenmillers are not gon to say i need shop by. they're going to throw money at the s&p. that's throwing money at faang plus microsoft don't forget as much as you may think those stocks are overplayed, they are the ones that do well when money comes to the s&p. the other ones that people buy are retailers thought to be left for dead that turned out to be hiring based on the initial findings of the last two weeks since america

started reopening. >> david >> yeah. i'm here, jim. sorry. trying to keep track of a couple things we typically would follow the rally up 2%. we're at 3176 in the s&p the nasdaq is into positive territory, up almost 9% now. is there any sort of change in your approach in terms of how you weight certain things in this market? do you start to look for more of the value names? >> i think the answer is yes i have not looked at auto for some time. when i see the cdc say no car pooling and when know the pandemic seems to be centered on public transit, then i have to tell you, people are going to buy cars if people are going to buy cars, can you buy ford absolutely can you guy gm absolutely can you buy the companies that make the parts that go into

autos? yes. i think that will be the next one. that's the next wave people are going to be looking for auto plays they have been left for dead the left for dead trade is still on at the same time, i think we're going to look for technology that does well when the economy does well. not just technology that does well when the economy does poorly >> you know, mark cuban tweeting a moment ago saying the jobs number is great, he says the great unknown is how many of the jobs that were subsidized by ppp will return after that money runs out that's still a question mark >> social distancing makes sports very difficult and mark knows that better than anybody i believe that mass -- i know mark is not a pro mask guy i think mask design can make it so maybe we can cut some of the social distancing. i know social distancing is incredibly important, but sports are a big part of the country. going out is a big part of the country. we've not solved that yet, and

we have to worry about that. i think we also have to get america open there's lots of the country where the phases are going slowly masks, social distancing do work particularly if everyone wears a mask but restaurants, 13 million people still a ka none dumconun. you still have to take half the tables out and mark cuban is dead right as always >> jim j have a good weekend >> thank you, i'm going fishing and doing gardening. i was supposed to not work today. some days if you take off work, ill advised. jimmy chill no longer says he's a stupid chowder head if he missed today i'm a changed man. >> jim, we'll see you later on jim cramer joining us for an important hour on an important day. welcome to "squawk on the

street." the jobs number is the story of the morning. 2 .5 million jobs added in may it's a shocker of economic data. dow returns to 27k for the first time since early march the president expected to hold a press conference in a few moments. >> good morning. not clear if the president is going to take questions in the rose garden. i've been asking white house officials whether he's going to do that or not they say that's up to him. we'll have to wait and see clearly the president jumping on the good jobs report and scheduling a snap press conference in the rose garden to take credit for it look, this is a jobs report that is incredibly good news politically for this administration they're facing a reelect through a tough summer in a very tough series of circumstances for any white house. you had an impeachment this year you had a global pandemic. you had an economic collapse now you have riots, racial

tensions and protests in the streets of america all of that just incredibly tough political news for this administration, and now a glimmer here that there might be a rebound through the late part of the summer and into the fall as they are campaigning for reelection this president will want to come out and take as much credit for this as he can and position for that ebound. and to take credit all the way to the fall and up to his reelection, and to me, if you look at this, it seems like this is one of the spaces -- the numbers we saw today gives an indication the rocket launch and the federal government response -- >> eamon, we're losing you your audio is breaking up. we got the message and are waiting for the president. we'll take you there live as soon as it happens on jobs let's talk more about the record jobs number.

2 .5 million jobs added to the u.s. economy that was a lot more than expected vice president pence spoke with us on the issue moments ago. take a listen. >> it's remarkable to think the jobs report today was from a survey in mid may when roughly 50% of small businesses around america were starting to reopen. the u.s. chamber did a survey where they think 80% are reopening. in all the discussions with governo governors, our focus in the month of may at the coronavirus task force has been to safely reopen america, and this jobs report today shows you the american people are stepping up, standing on the strong foundation that president trump laid the strong resilient economy, the resilience of the american people, and this recovery begins today. >> joining us david kelly and

diane swonk on the economy economists were looking for down 7.5 million jobs on the month. that's a big miss. how did that happen? >> it's stunning part of it is the bls playing catchup with the birth and death rates estimates for small businesses we saw the losses in april now at one point -- in march, at 1.4 million, double what the initial reported for march before a state shut down there were some revisions to the month of april as well we welcome this rehiring it really was workers coming off of temporary -- back into jobs and rehired over half the increases were in food services as restaurants attempted to reopen for the memorial day celebrations what we do worry about is that we've seen an uptick in hospitalizations and co-vid cases since the celebrations took root. and we worry about how much the ppp loans can be modified so

that these restaurants and these small businesses can stay open we also saw an increase in health care hiring, but the sector itself is still down significantly with many furloughs and layoffs pending. so as much as we're excited about this, we have to take it in the context of we're still running an extremely high unemployment rate after you account for those workers who said they were absent from work due to co-vid instead of unemployed even though they weren't getting a paycheck it's over 16%. so great news to see rehiring and reopening. this is something to be cautious about in terms of recession recovery the post covid-19 world we have to be careful how we talk about gains off low levels they're misleading about how much the economy is actually operating at kpa capacity. jason furman made the point, and i think it's important that jim made the point about restaurants. restaurants need 75% capacity

with peak, crowds. thursday through saturday to meet their costs and make money at 25 or 50%, they can't cover their overhead, let alone their wait staff much is to be seen the other thing that's important to point out is we continue to lose jobs in the state and local sector this is what happened during the great recession and dampened the recovery over as we got into it, the employment recovery. we just can't afford that. we really want state and local governments hiring not firing as we're trying to reopen the economy. >> well, and that gets to the next point, david, which is if you look at the market reaction, 2% gain for the major averages 25% gain for some of the airlines does it show us the stunning rally now more than 42% off the march lows was more about the reopening than about the stimulus because the initial statake her from most washington watchers and economists is there's not as much urgency when it comes to

the next phase of fiscal stimulus or more action from the federal reserve? >> i think we'll see more stimulus and as long as the federal reserve is willing to finance it to monetize the debt, i think that's powerful federal stimulus but i think the markets got ahead of itself. this year it's a little bit like you jump off the edge of the grand canyon onto a trampoline the bounce is impressive, but the fall is important. we still have the highest unemployment rate since the 1940s. and i don't think this is a v-shaped recovery overall. it's a great start good to see the first step the rest is harder the government is going to need to be careful both to control the disease, encourage people to social distance, wear masks and try to stop this from ree americaning and help the companies that can reopen to do so it's a long battle in the end this is a back ends recession. it started with a virus and is going to end with a vaccine. we need to be careful as we go through this to continue to build competence among the

companies that can reopen to help them stay open here it's going to be difficult in the months ahead >> although, diane, i mean, i forget which fed speaker it was in the recent weeks, maybe cap lan said the shutdown is a card that you can only play once, and to david's point, if you see a spike, you're not going to see ri trixs put in place like in march and the market is counting on that. >> well, that's right. what's interesting is that we lost now 1.4 million jobs between february 16th and march 14th th. that's what that survey from march was from it's been revised twice. it's doubled the initial estimate for that month and the record and that is really important, because it shows that our behaviors alone triggered that pullback so you don't need formal shutdowns to get people to pull back with a rise in co-vid cases. as we've seen since the memorial day celebrations that they hired

up for have taken place, we've also seen a rise in hospitalizations and co-vid cases and we don't know what the recoil and the recurrence of a surge in co-vid cases will be from the protests and things we've seen in the wake of the tragic killing of george floyd i think that's really important to keep in mind as well. and i agree with david that this is great we want to see these people rehired. these were temporary workers brought back from temporary layoff and rehired they have to stay hired. we're worried as we go through the summer you'll have another wave of white collar layoffs that have yet to hit as we struggle to reopen, and many of these workers who are brought back will be laid off again but with many fewer unemployment benefits the it adds to fiscal fatigue it's at the wrong moment we want to ensure to get us through this

it starts with the infection and spread we saw prior to the shutdowns and ends with a vaccine. there's a concern vaccine is only three to six movanths in duration we need an uptick in people taking the vaccine more than with the flu this is a more devastating disease on the number of people who are hospitalized that are young and otherwise healthy. >> those are a ton of good points about the worries and risks out there and why it doesn't look to be a v-shaped economic recovery, and i can't help but think it's all those warnings investors were hearing for the last few months from people on our network, from state hedge fund managers and nobody expected how quickly the jobs would come back and today's number proves that with a huge miss against the forecast >> i think the forecasts are based on things like unemployment claims.

dp you look at adp survey, deep questions will be asked about the numbers. they missed by 5 million and it's supposed to be surveying the same thing i think there's issues with the data the reality is the drop wasn't as bad as we thought it was going to be. that's good news but i think that this is no time to take our foot off the pedal with regard to keeping the disease down, but also i think we will need to get -- i think the $600 bonus payments for low wage worker who is are unemployed, 60 $0 may be too much you need something or it's widespread poverty after july. the workers are not going to get back to work in a rush we need more money for state and local governments. they'll continue to lay people off. there's more work to be done i think we need to keep our eye on the ball. the market is too complacent we shouldn't be this high given

the amount of uncertainty on the economy and the disease. so investors need to be a little bit cautious here. be diversified, recognize this is not a victory here. it's a first step, a long and very treacherous and difficult road we're on here and we're going to have to keep our eye on the ball >> the waves of activity both to the good and the ill in this economy, i wonder if you think they're overpowering our ability to measure it. i'm not suggesting that we should doubt the data this morning. but when revisions come, how dramatic do you think they could be >> yeah. well, we've already seen a doubling of the losses in march alone because they are playing catchup with the birth and death rates of small businesses and incorporating it into the data that's estimates that they don't have the hard data business formations actually came off an extremely low level, almost standstill in april in the early part of may and into

later may. that's what you're seeing reflected in the data that births of new businesses actually came back and business formation came back a little bit, but it's still in an extremely low level. and we don't know what the secondary wave of defaults are going to be as the businesses can't ramp up to the levels they need to be at to sustain the employment coming back and i think that's what's important to keep the focus on we're still even with problems in the ability to capture all of these losses relative to say, unemployment claims, some of it is data problems, bls is doing remarkable work and there are weekly surveys of households and grading a sense of food insecurity the number of people who can't feed their children in a week is remarkably high. and unbelievably high for such a wealthy economy. i agree with david that we have to be very careful to keep the -- our eyes on the ball. particularly with fiscal policy. we can't afford to get fiscal

fatigue. we've blown a huge hole into the u.s. economy from co-vid related losses and it's great to see this bounce. we embrace it. but if we want to sustain it and really regain the nearly 20 million jobs that we've still seen officially lost since the onset of the crisis, we need a lot more sort of to this marathon, being able to pace ourselves on that fiscal relief which i fear now is going to be less than what we need >> david, why do you think there will be more stimulus. the market is not tanking and the unemployment is not rising takes urgency off. >> well, let's look at state and federal governments. we know the losses they'll sustain in state and local sales and income taxes, they'll have to replace the money the people have lost jobs, the

poorest people in the country working. that's why the average wage rate has gone up. so many low paid workers have been laid off. right now they're getting generous unemployment benefits if it expires in july with no replacement, people will be starving let's be reasonable here this is a time when i think we've got to not play political games. we don't need a bill as big as what we passed so far. we need something to supplement unemployment governments and something to help small businesses actually make a profit in the social distancing world. the danger is they reopen and they're bleeding red ink and letting the ppp loans run out. they shut up shop. it's like a patient over the highest of the temperature, but they're sick you don't want to see a relapse. you have to keep the patient under pretty intensive care

until we have a vaccine for coronavirus. >> david, diane, thank you for joining us as we wait for the president, the market up 2.2 %. >> 27k all time high on the nasdaq 100. 10-year a stone's throw from 1% right now. eighty dollars. a hundred dollars. i had good health insurance. why isn't this covered? well, then they started getting bigger. eight-hundred dollars. eighteen hundred dollars. i saved for this. but not that much. i'm glad i had aflac. they gave me money when i needed it most. that's why aflac is here, to help with the expenses health insurance doesn't cover. i love that aflac duck. aflac! get to know us at aflac.com

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we thought you could help ray bring hiwhat?s to school. kelly, do you know him? -he's a new friend. you ok? you know you can tell me. i'm ok. oh, i trained her in the car. she's not gonna break. [ laughs ] jobs number is the story of

the day. it's fuelling the stock rally. awaiting the president along with the protests still taking place around the country demanding solutions to racial and income inequality. the ceo of snap on is joining us good to talk to you. >> thanks for having me. how's it going >> it's going pretty well today. both market and now this jobs data, it took a lot of people by surprise certainly not what economists were expecting does it fit with the picture you're seeing? >> sure. i think it does. i was on the road visiting factories and garages and talking to franchisees we've seen this picture before we say the event is shock. we had the virus then accommodation and psychological recovery we went through the shock

period, i believe we saw the same thing at sandy after katrina. on a smaller geographic area, this is sort of the same we have a pretty solid business. we're not recession immune, but we're kind of resistance it's one of the reasons why we've been able to pay a dividend every quarter since 1939 >> it raises the questions all the companies that in march and april appeared to be going ultra defensive, raising a ton of issue, issuing a lot of debt, what happens to the capital now that they've established the fortress walls do they keep it for a rainy day fund or the risk of things going wrong in the fall or beyond? >> you can't speak for everybody. i think this is it let's not get too overheated unemployment is still 13%. this isn't full recovery but i do think it reinforces the

idea this is a v start coming back. people start to figure out how to deal with the problem i was in vietnam when bombs fell in vietnam, people got daunted for a day or two, but the cities restored to the lives. i think people will take that capital and be careful about it. they start investing in the future there's no reason to believe that the world doesn't get better for us, we think people want to start driving more, because i think mass transit and inner city positions are less attractive in the case of now that a black swan of a virus we'll invest in product. we've said we're going to come out of this stronger because we're going to keep investing in brand and our product and our people we spent a lot of time moving our snap on team we haven't laid off anybody during this period we're going to try to make sure we don't do it we want to keep our team intact.

>> do you think that's representative of the broader manufacturing industry in the country? do you think that manufacturing is going to be able to weather the storm better than other industries >> i think it's difficult, but i think manufacturing has been essential. one of the great things about this period is it reinforced how important essential makers and fixers are to our economy. i've always felt and i talk often about this one of the things we need to do is restore the respect for the dignity of work. for working men and women. they're the people that have made us great through the whole period this virus is a lesson in that regard because isn't it ironic that the jobs we look at, factory jobs or repair jobs, that some people view as a consolation prize of our society are the jobs we turn to as essential when the days are the darkest. i think what's going to happen is as we come out of this,

people are going to say boy, manufacturing is more important. can you imagine if we had outsourced all our toilet paper to china it would have been panic >> there was panic anyway, nick. to that point, though, if we truly repatriate a lot of manufacturing at a higher cost basis, because we're not going to -- workers are not going to tolerate chinese wages, and if demand comes back, what happens to pricing in your business? do goods get more expensive? >> well, we -- >> and to sell >> i'll tell you this. we actually make in the markets where we sell. so 80% of what we sell in the united states is right here. it's made right here and hand tools, 50% labor. we've been able to deal with that by working at the factories constantly people talk about distancing when we go in the factories, we see that people are distanced automatically pause they're running three or four machines they're running the robots

i believe as manufacturing expands, ironically, this is the answer to some of the social issues of the day. because i think people have talked about the angst and the despair and the fear about this. i think the solution is to expand great jobs the makers and fixers restore the respect for those jobs and allow people to be included in that or your degree isn't necessary i believe that expanding manufacturing in the united states, growing that base which has always made us strong, gives jobs, includes people and makes for a stronger and healthier economy. and solves some of the big issues of this day >> it would be great if those two things could dove tail, and solve two problems or get to solving two problems at the same time >> i believe they can. let me add this one thing. one of the things about it is is that before the pandemic,

500,000 manufacturing jobs in the national association of manufacturers documented this. went unfilled. part of it is we didn't have the schools in place we know how to deal with that. but the other part is people who'ven didn't have jobs, viewed jobs in manufacturing or in garages as jobs that didn't fulfill the american dream, that didn't give them the way to make their families warm and safe and dry and give them pride and dignity. all the bill lars of a great life i can assure you the ability to keep your family warm and safe and dry and the pride and dignity are available in abundance in the factories of snap on and across the repair garages of this country. and so if we talk about those jobs as if they are not consolation prizes, or maybe something which other people settle for, but are truly what they are as has been demonstrated this time, an american calling, and i think we go a long way to building our economy back up, creating the

inclusion we want, and allowing more people to access the american dream >> nick, we love checking in with you thank you for that we'll talk to you soon >> okay. sara time for our etf spotlight today semi conductors ticker smh hitting a new intraday all time high on pace for the best week in two months. economically sensitive chip stocks names participating include micron, broad com, kla corp. stay tuned president trump's news conference on the jobs report a gain of 2.5 million jobs versus an expectation of a loss of 7.5 million jobs. it was a mucbeerh tt report. we'll be right back on squa"squ on the street"

welcome back, everyone here's your cnbc news update at this hour. the tsa says nearly 392,000 travelers went through the check points yesterday that is the most since march 22nd it's also up 22% from last thursday nonetheless, the number of travelers is down 85% from the same day last year the video you're about to see might be upsetting in buffalo two officers suspended without pay after police shoved a 75-year-old man to the ground, cracking his head

on the pavement. it happened while police were clearing protesters from a city square the mayor said the man has been hospitalized and is in serious but stable conditions. british scientists halted a large trial of high driving while intoxicated cold hydroxychloroquine you are up to date i'll see you in an hour and back to you, carl all right. sue, thank you i think we're going to get to david faber in a moment here on the ongoing saga >> carl, i haven't gotten to it this morning there's been a number of reports about it it's a story we've been following closely since women's wear daily brought up the idea

well being disturbed by the deterioration of tiffany's business and the possibility of getting a price cut. i can tell you the -- all right. we have to go to the president i guess i'm not sure when we'll get to this, but let's go to president trump. >> we'll have positive surprises. and therapeutics likewise, we're doing extremely well cures we're doing well i think those two words blend in with each other. but tremendous progress on vaccines we have ready to go in terms of transportation and logistics, we have over 2 million ready to go if it checks out for safety. and it's also the nice part is we have four companies, i guess you could even say seven or eight companies that are doing some similar and some different on the vaccine front, and some

similar and some somewhat different on the therapeutic front. tremendous progress is being made on that, and i think even without that, and i have to say even without that, and i don't think you're going to have to use that in the future, that statement, even without, because i think they're going to have it, but we're going to be back and we're opening our country, and i hope that the lockdown governors, i don't know why they continue to lockdown, because if you look at georgia, florida, south carolina, if you look at so many different places that have opened up, i don't want to name all of them, but the ones that are most energetic about opening, they're doing tremendous business. this is what these numbers are all about. and you have to remember one other thing. it's extremely important to remember many of our states are closed or almost closed. some of the big ones new york, new jersey, they'll start. they're starting now to get open, i hope i hope they also use our national guard

call me. we'll be ready for them so fast their heads will spin. we did it in minneapolis they were ripping that place apart. i love it. we had such success there. and they were ripping it apart, and i called the governor, and the national guard went in and in one night it was over you don't see the problem in minnesota now. at all not even a little bit. take a look at a great city. it just -- great city. minneapolis. and it was under siege like nobody's ever seen where people are running from the police department, the great police they were told to. they didn't want to run. they were told to. it's bad governing i'm blaming the mayor, but we want to get all of this finished this is a great tribute. what we're announcing today is a tremendous tribute to equality we're bringing our jobs back when we had our tremendous numbers, and when we had just

prior to the china plague that floated in, we had numbers the best in history for hispanic and asian american and for everybody. best for women best for people without a diploma, young people without a diploma. so many categories our numbers were the best in almost every category. we had the most people working in the history of our country. almost 160 million people. we were never close to that. we had things that -- we were doing so well, and then it came in i think we're going to be back higher next year than ever before the only thing that can stop us is bad policy. frankly, left wing, bad policy of raising taxes and green new deals and all the things that you have been writing about long and hard that will stop it like you wouldn't believe and frankly, it's holding it back if there were no possibility that that can happen, and i like

to be optimistic i think we're looking good i think before today the polls i've seen and we do were looking very good, but if we didn't have the possibility of having massively higher taxes like the democrats want to do, and green new deals which are ridiculous, ridiculous and i'm a big environmentalist i believe strongly in taking care of our environment. we have the cleanest air we've ever had, like other the modern era. let's say you go back 30 years we have the cleanest air and water we've ever had we're setting all sorts of really good environmental records. we're proud of that. the green new deal would have a devastating effect on the world. it's impossible for them to do it if you look at what they want to do, it's like baby talk this was an important day. it shows what we're doing is right.

and the reason it is so good is because the body was strong. our body was so powerful that we could actually close our country, save millions of lives, stop people very early on from china from coming in because we stopped early at the end of january, very early, people coming from china who were infected coming into our country. it was a hard decision to make almost nobody wanted me to make it i would almost say nobody wanted me to make the but we made the decision and even my enemy said that was extremely important we saved tens of thousands of lives with that decision we did a lot of things and then we really ended up with empty cupboards. we went into a ventilator period, the likes of which nobody has seen since the second world war. we mobilized nobody has seen anything like it and then we did tests.

we're over 20 million. i think over 20 million tests. more than anybody in the world germany is about at 4. and south korea is at 3.5. we're at over 20 and by the way, when you do more testing, you have more cases we have more cases because we do more testing than anybody. it's simple. this is outstanding what's happened today now, they thought the number would be a loss of 9 million jobs and it was a gain of almost 3 million jobs i think it was incredible in a couple of ways number one, the numbers are great. and this leads us onto a long period of growth we'll have the greatest. we'll go back to having the greatest economy anywhere in the world. i think we're going to have a very good upcoming few months. i think you're going to have a very good august, very good july but a spectacular maybe spectacular settlement a spectacular november,

december, and next year is going to be one of the best years we've had economically, and if you look at the numbers, they bear it out. but we were strong it's like when you go for an operation, if a person is healthy, we were healthy we had the greatest economy in the world. we went in for an operation. we closed our country down we closed it down. we saved possibly 2 million, 2 .5 million lives now, it could have been a million lives. i don't think anything less than that but if you think we're at 105 million today, the 105,000 today, that would mean at the lowest number it would be 10 times that amount. and i think everybody believes the least if we heard as they say, if you look at brazil they're having a hard time, and they kept bringing up sweden it's come back to haunt sweden they're having a terrible time if we did that, we would have lost a million, maybe

2.5 million lives. we closed it up to europe. europe became very infected from china. a gift from china. they should have stopped it at the source but it's a gift from china and a very bad gift. i will tell you that when you do say how come at wuhan where it started and they were very badly, were in bad trouble, but it didn't go to any other parts. beijing or other parts of china. when you say how come it came out to europe, to the world, to the united states? so it didn't go to china they stopped it. knew it was a problem. but they didn't stop it cold from coming to the united states, europe, and the rest of the world. somebody has to ask these questions. and we'll get down to the answer you know, we made a great trade deal we're going to buy $250 billion worth of product and they're online they're doing okay but the ink wasn't dry on the

deal when the plague floated in. what's going on? the plague is floating in from china. what's going on? so the ink wasn't dry. i guess i view the trade deal differently than three months ago. it's a great deal. they are buying a lot from us. in that way, i respect and getting along with china would be a good thing. i don't know if that's going to happen i'll let you know. i think they want to get along very much with us. but we built a tremendous thing, a tremendous power platform. when it got ill, when we had a problem, we were able to cut it off, stop it, just like this stop it. keep everyone inside keep them away keep them together, away uninfected, and we saved millions of lives and now we're opening with a bang. we've been talking about the v this is better

this is the rocket ship. this is better than a v. a v is wonderful a v is this. will it be a v, a u, an l? they had no idea i was watching one of the shows. i have great respect for people. they said will it be 9 million job losses will it be what will be the number will it be, are they going to report record numbers? will we break 20%? what will the number be? and you know, i don't know because we were in and i don't think we're in that territory anymore. we were in unchartered territory. nobody has ever had a situation like that. so the number was 9 million and one of the people was -- no, no, i think it's going to be 10 million. that's 10 million negative losses and then somebody else said no, we think it's going to be 8.7. 9.2. everyone was right around that number this is great geniuses and they are. i watch them all the time and oftentimes they're right

warren buffett soild airlines. right his whole life, but sometimes they make mistakes the airline stocks went through the roof today and others did too. the whole market went through the roof, but they said 9 million job losses 9 million. that's what it's going to be are we going to break 20%? are we going to break it and then the numbers came in, and none of the folks that was reading the numbers said wow, this is a great number it's only be million job losses. and then reading it and said, you know, i'm not reading this right. let me look at it again. wait a minute. this is 3 million gained almost. and then one of them semi shouted out is this a typo i think it was probably the greatest miscalculation in the

history of business shows. the history of business shows talking about wall street. and that's okay. but one of the reasons we're in this position is because we had such a strong foundation we were able to close our country, save millions of lives, open and now the trajectory is great. don't forget, new york is barely included and that's one of our big ones california is barely included. because they're not open and they should open, by the way. the mayor of los angeles wants to keep this thing closed for a long time. look at what's going on in florida. it's incredible. the job the governor of florida has done is incredible the numbers they're doing. you've got to open it up, and you do social distancing and wear masks if you want and you do things. you can do a lot of things you're getting closer together even you, i note you're getting closer together. it looks much better you're not all the way there, but you'll be there soon it's a tremendous thing that happened and it happened because

we had a really strong patient we had a patient that was so powerful, so strong that we could close it and open it i give this analogy. somebody told me yesterday, it was larry kudlow he said sir, it's like a hurricane. and we were worried. we didn't know, is this going to be a hurricane or a major recession? a major recession that's not artificially caused because we artificially -- this was artificially closed. we said boom, closed, and everything just stopped. and also, you know what else stopped? big numbers on death by doing it. and that's why we had to do it we've made every decision correctly, but it was like we stopped. it was an artificial closing and then what happened, very incredibly larry was saying with a hurricane you have a horrible hurricane in florida or texas and it's devastating and then the hurricane goes away

and within two hours everyone is rebuilding and fixing and cleaning and cutting their grass. i've seen it in texas. i've seen it everywhere, everywhere texas had a massive one. louisiana. hurricanes florida, hurricanes. what happens is right after the hurricane, boom, and this is what this is this is a terrible recession i don't even mention the d word. i don't talk about it. i don't want to talk about it. because every time somebody even mentions it, i don't like the "d" word if you had a really, really big bad recession, it would take -- it could take 10, 12 -- how long did it take in 1929? it took many years to recover from that? ten, i heard ten, i think longer than ten, but that's okay. i heard 14, 15 years larry says 10. let's go with ten. it takes a long time to recover. but a hurricane, you're back in

business in one day, two days, three days it's devastating and hard. and this was a hurricane it's going to get better fast. the early numbers are what you see. they're not even in the last month. and speaking of that, you had the greatest 50-day rally in the history of our exchanges the greatest 50-day rally. and we have a lot of protesters. and we have something else right? we have something else we have a pandemic we've made tremendous progress if you look at where we've come on both, we've made tremendous progress on both tremendous progress. but you're looking and the people are now starting to return to work it's been an incredible thing to see. it's been a beautiful thing to see. the experts predicted that the -- >> that's the president in the rose garden talking about the

jobs number this morning the co-vid response, talking about the numbers in his words, which are great. the economy better than a v, a rocket ship. even commenting on buffett's call on airlines economists consensus views for the jobs number calling it the greatest miscalculation in the history of business shows. we'll bring you headlines as they develop he'll sign the ppp flexibility act soon and head to soon. a reminder to viewers the president used to come on our air once a week, at least, and talk about the economy and markets and talk about personalties that news conference could have fit in any of those segments from years ago >> absolutely. reminds me of the trump tuesdays and the president making open ended comments there but really taking full political credit for the rebound and suggesting he's made every decision right throughout the year with the pandemic and the economy. the president making the anl si that this is more like a

hurricane's impact on the economy than it is a full blown recession. that is, it's temporary and sharp. the minute the sky clears, people get out and start rebuilding he's hoping that's what's going to happen. and if it does, that's a strong piece of evidence for him out on the campaign trail saying look, i handled this right and the economy is rebounding. reelect me in november this white house is happy to have the news after a tough week, couple weeks for the white house politically. and carl, i want to say something about what we've seen on twitter and some high profile commenters, the bls truther crowd. you alluded to it earlier. we see skepticism from trump critics. there's no evidence to suggest there's anything wrong with the number it's different than what we expected but there's no evidence that this was in some way cooked as we've seen some prominent people out there suggesting it reminds me of the days back

in 2016 when we saw prominent partisans saying the chicago guys are cooking the numbers for barack obama in 2016 there was no evidence of it then there's no evidence of it now. we'll follow the trail if there ever does become any evidence and we'll report it. but i think people need to take the numbers on face value until there's any evidence that they're not. and i think that skepticism speaks to something going on in our society broadly which is a generalized lack of trust skepticism and increased believe in conspiracy theories across the board. it's something we have to watch. it makes it harder to analyze the numbers. >> quickly, the president said that china gave us a gift from china was how he referred to covid-19 a plague floating in from china. he also talked about the trade deal he said i view the trade deal differently. they are buying a lot from us, he said, which i respect, but clearly for an issue that matters so much to the market, is this deal in jeopardy

>> well, look, we don't know you've seen good news from the white house. they're heartened to see the chinese begin to buy after a pause period there was concern the deal would fall apart theapart the signals they're getting now seem to suggest that things are on the upswing from the chinese as the virus passes maybe the chinese will be able to hold to their end of the bargain a little more. the situation between the united states and china is difficult and getting more difficult and the real flashpoint is the hong kong situation and the protests and crackdown of the chinese politically on hong kong as the u.s. government expresses frustration with that decision, you're going to see more tension between the united states and china and i think that that is going to be the question of whether that pressure snaps the trade deal or whether the trade deal is tron enough to withstand the real divisions we're seeing between the united states and china. >> eamon javers, thank you

session highs, a little over an hour into trading as the president speaks the dow up 752 points, a gain of almost 3%. the s&p up 2.3%. the nasdaq zooming up 1.7% let's bring in jan, the chief economist at goldman sachs on the jobs number that we saw today, how are you explaining it to your clients the big miss from economists and forecasters like yourself? >> i think we just saw a lot more rehiring. i mean i think that's the best explanation hat, you know, we saw in late april and through may that economic activity was picking up, but didn't really expect that to translate into significant rehiring until the june numbers there's a lot more rehiring. there have been a lot of layoffs. we can see that from the weekly unemployment claims numbers, but the missing part in terms of the

weekly numbers is how much rehiring there is and in both the establishment survey and in the household survey we're seeing that people are coming back a lot more quickly than they would have done in past business cycles that were driven by factors other than the pandemic it is a very, very different business cycle and the lags between resumption and activity and a turn in the labor market are also much shorter. >> how sustainable is the rise in employment? how quickly do these jobs come back we're still looking at a double digit unemployment rate with millions of americans out of work >> that's right. the unemployment rate is still very high. there's still, you know, classification issues in household survey of employment as the labor department says in the qa and accompanying the

report there is some, you know, there are people counted as employed but absent from work that one could also count as unemployed there's no question that there's still a very large hit to employment, even after this report how sustainable is it? i do think we're going to get -- throw the declines in the unemployment rate about 75% of job losers since february are temporarily unemployed or temporary layoff ands historically a large proportion of those temporary unemployed workers come back pretty quickly within the next three to six months into employment so the unemployment rate is going to continue to fall and the payroll numbers are going to continue to be, you know, positive in the millions we'll see how far we're going to fall by the end of the year into 2021 i think there's an enormous

amount of uncertainty around that, but this is very clearly the teurn in terms of the labor market and clearly a month before most people expected it >> hey, jan, give the president's rhetoric just now, it's hard to imagine that the political will exists for further stimulus, fiscal or monetary is that your view and what implications would that have for when we get to some of these employment fiscal cliffs, such as the runoff of ppp money. >> it raises more of a question around the political debate, as far as fiscal policy is concerned. we still expect that there will be additional fiscal action because you have the $600 of additional unemployment benefit per week that runs out at the end of july and i don't think that they're going to let that

lapse, you know, in one goal an extension of 600 beyond july, that seems unlikely to ask, but we think basically 300 or so to sort of soften the blow somewhat i think there's the changes to the ppp and i think there will be some extensions you know there as well. on the monetary policy side, i don't think it really has a major impact i don't think the fed is really going to change anything we're not expecting significant shifts next week they still see an extremely high unemployment rate, yes it's much lower than they thought. but we're still far into double digit territory and they're going to be focused on the fact that that's the highest number still we've seen in the post-war period and we'll -- we'll be very careful not to send a message that this means they're

going to exit from accommodative policy any time soon they would be worried about that reaction in the bond market and potential repercussions for the further recovery we still need to see to start putting people, you know, back to work in a more comprehensive way. >> is all right. so you would not expect any comment from the fed that would alter or change the way spreads have been behaving in recent weeks? >> i think they will still indicate that they're going to be extremely accommodative for a long period of time. they'll, of course, you know, greet the improvement in the labor market numbers and some of the other numbers and that's very encouraging but there's still a long way to go that's the message that i would expect at the press conference on wednesday >> jan, how many of the jobs or which industries how are you thinking about which jobs that

are lost could be permanent? >> i mean, i think the, you know, vast majority of the job losses about three quarters that we've seen since february have contemporary -- we don't have a huge amount of industry level breakdown on that. this comes from the household survey employment which doesn't give you as much industry detail, but my assumption is that the temporary job losses are over represented in areas like leisure and hospitality and construction and generally in industries where you've got shorter, more turnover in employment relationships and so there i think the rebound is also likely to be most pronounced we don't have a lot of data on that industry distribution >> and finally, jan, the shape

of the recovery, this is looking like a v fushgs look , if you le initial stage of reopening the president describes it as a rocket ship. does this do anything to change the overall curve once we get past the initial stage of reopening of the economic recovery in this country >> yeah. it is looking more v-shaped i think and that was already i think somewhat visible over the past few weeks where the hit to april, you know, looked like it was getting bigger in terms of the estimates, but at the same time there was more evidence that you really started to come back in late april and into may. i think it's definitely more v-shaped we're going -- and i think the initial stages are going to feature some big increases in economic activity because there are a number of areas, number of

industries where it should be pretty easy to bring back activity manufacturing is a good example. the u.s. auto industry basically was at zero production, close to zero in april, the production plans are calling for 70 to 80% of capacity by june. now we'll see whether that ultimately materializes. but i certainly think you can bring back a large amount of production in areas like manufacturing and construction thereafter, you know, i think the pace of recovery is probably going to slow somewhat it's going to be fastest in the first few months and then as with you get towards the end of the year the uncertainties go up somewhat how many of these temporary job losses will have become permanent in the meantime. some probably will there's also the question of what happens with the virus news the virus news has been good of course there's still uncertainties around how reopening affects the new virus cases. but yeah, it's definitely

looking more v shaped in the short term >> all right good to hear, jan. thank you very much. always good to have you on a jobs day chief economist at goldman sachs. carl >> all right sara, we'll see you this afternoon. good friday morning, everybody welcome to "squawk alley." i'm carl quintanilla with michael bloomberg and jon fortt coming to you live from separate locations. a remarkable morning for the economy and markets as the jobs number comes in much better than expected, a gain of 2.5 million, a gain of 2.5 million and the unemployment rate nowhere near estimates at 13.3. 27 k on the dow, all-time highs for apple, for the nasdaq 100, the 10-year near 1%. just a huge pivot, a potential moment here, jon, for the market and hopefully the economy at large. >> yeah, carl. when many thought a v-shaped recovery was off the table, more sign not just in the market but the economy itself that the recovery might be taking